2020: SB 374 Final Remedies and Special Proceedings; new requirements under the “Georgia Civil Practice Act” for settlement offers and arrangements; revise and provide
Session 2019-20SB 374 would have established reasonable parameters and limits around settlement demand letters in civil cases. Currently, plaintiffs’ lawyers can make settlement demands so complex and confusing that when an insurance company asks for clarification or cannot assent to frivolous requests, it is seen as a rejection of the settlement offer and the insurance company is said to be acting in bad faith. Claims of bad faith allow a plaintiffs’ attorney to sue an insurer for more than the policy limits of the defendant. This bill requires that offers of settlement be reasonable, limited in scope, professional, and clear so that bad actors cannot continue to issue specious and purposely complex offers of settlement to the end of suing for amounts beyond what insurance policies cover.
Though the SB 374 passed the Senate, the House failed to take it up for consideration.
| Description | Sponsors | Bill Status | Chamber Position |
|---|---|---|---|
SB 374 would have established reasonable parameters and limits around settlement demand letters in civil cases. Currently, plaintiffs’ lawyers can make settlement demands so complex and confusing that when an insurance company asks for clarification or cannot assent to frivolous requests, it is seen as a rejection of the settlement offer and the insurance company is said to be acting in bad faith. Claims of bad faith allow a plaintiffs’ attorney to sue an insurer for more than the policy limits of the defendant. This bill requires that offers of settlement be reasonable, limited in scope, professional, and clear so that bad actors cannot continue to issue specious and purposely complex offers of settlement to the end of suing for amounts beyond what insurance policies cover. Though the SB 374 passed the Senate, the House failed to take it up for consideration. |
House Second Readers 3/4/2020 |
